Tim Geithner Committed Securities Fraud

Information revealed today regarding Tim Geithner’s activity while at the New York Fed is nothing short of outright fraud and a violation of securities and exchange law.

In late 2008, while AIG was being rescued by the American tax payer the Federal Reserve Bank of New York, then led by Tim Geithner, instructed AIG to withhold material information from regulatory filings. The information that the New York Fed  instructed AIG to withhold was related to the credit default swap payments that ended up being paid at par, even though they were worth significantly less.

At the time, AIG was attempting to follow the law and disclose the details as they were ‘materially important’ as defined by exchange laws.  But the Fed, in email communications released today, show the Fed specifically instructed AIG to withhold material information form the Securities and Exchange Commission and investors.

If the Tresuary Secretary of the United States, while serving at the New York Fed has this little regard for securities law, then how are we as American’s to beleive anything that he currently does or say ?

The evidence revealed today should be enough for an indictment of securities fraud. Tim Geithner’s actions while at the Fed is an aberrant and egregious violation of disclosure laws under the exchange act section 14 (a) and of the Securities and Exchange rule 14(a)-9(a).

The violation of the various disclosure laws is bad enough, but what may be even worse is the violation of the trust to the American people he now serves as the person in charge of the people’s money.

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